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Title: Navigating Success: Synergies between Angel Investors and Human Resources in Enhancing New Venture Performance
Authors: Zahra Batool
Journal: International Journal of Contemporary Business Literature (IJCBL)
| Category | From | To |
|---|---|---|
| Y | 2024-10-01 | 2025-12-31 |
Publisher: ASIAN ACADEMY OF BUSINESS AND SOCIAL SCIENCE RESEARCH (PRIVATE) LIMITED
Country: Pakistan
Year: 2023
Volume: 3
Issue: 1
Language: English
Keywords: Human capitalSmart PLSBusiness AngelsVenture PerformanceBusiness Industry
The success of newly founded businesses has become a crucial and complex subject in today's unstable markets. Similarly, success of new venture in Pakistan is of the crucial task and its success is quite limited in Pakistan. Initial capital investment is a major challenge in Pakistan. Therefore, the purpose of this study is to examine the effect of business angel on new venture performance (NVP). Therefore, the relationship between business agnel, human capital and NVP was considered. A quantitative approach was followed in which primary data were collected by conducting a survey. Partial Least Square (PLS) was used for data analysis. It is found that business angels have vital contribution to the success of new ventures in Pakistan. The promotion of human capital is possible through business angels leading to an increase in NVP. This study has valuable insights for the people starting new ventures by focusing on business angels and human capital.
To examine the effect of business angels and human capital on new venture performance (NVP) in Pakistan, and to investigate the moderating role of human capital in the relationship between business angels and NVP.
Quantitative approach using primary data collected through a survey of SME managers/Business Angels/owners in Bahawalpur, Pakistan. A sample size of 265 was used. Partial Least Square (PLS) was employed for data analysis, with SmartPLS 3 used for assessing the measurement and structural models.
graph TD;
A["Define Research Objective"] --> B["Identify Population: SMEs in Pakistan"];
B --> C["Determine Sample Size: 265"];
C --> D["Collect Primary Data via Survey"];
D --> E["Administer Questionnaire to Managers/Owners"];
E --> F["Analyze Data using PLS-SEM"];
F --> G["Assess Measurement Model"];
G --> H["Assess Structural Model"];
H --> I["Evaluate Direct and Moderating Effects"];
I --> J["Draw Conclusions and Implications"];
The study highlights the critical role of business angels in providing not only financial capital but also support and guidance to new ventures, particularly in emerging economies like Pakistan where formal venture capital is scarce. The findings suggest that investing in and promoting human capital, potentially facilitated by business angels, is crucial for enhancing the performance and success rate of new businesses.
Business angels have a vital contribution to the success of new ventures in Pakistan.
Human capital has a positive influence on new venture performance.
Human capital moderates and strengthens the relationship between business angels and new venture performance.
Business angels and human capital are significant drivers of new venture performance in Pakistan. The synergy between these factors, with human capital moderating the impact of business angels, offers valuable insights for entrepreneurs, policymakers, and legislators aiming to foster SME growth and success.
- The study was received on 21-04-2023, revised on 16-12-2023, and accepted on 19-12-2023.
- A sample size of 265 was used, with a statistical power of 0.95, a medium effect size of 0.15, and a significance level of 0.05.
- The study found that business angels have a positive effect on NVP (Beta = 0.193, T Statistics = 3.895, P Values = 0).
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